Looking to refinance and best rate I have found so far for a 30 year fixed conventional is 5.5% with $2300 in closing costs or 5.375 with $3328 closing costs. Anyone work in the Finance Industry who might have a better deal?

treerootCO

01-18-2008, 06:11 PM

my advice is tell the mortgage broker to add a clause that your loan cannot be sold to GMAC, USBank, or WashingtonMutual. (too long of a story to type)

Rezarf

01-18-2008, 06:16 PM

Ken, I have a good friend who is a broker, I can give you his info if you'd like. He is independant and tried to get me the best deal he could.

Drew

Romer

01-18-2008, 06:16 PM

I have been with GMAC on two different loans the last 10 years and haven't had an issue. The same loan from them would have been $3300 more in closing costs.

Romer

01-18-2008, 06:17 PM

Ken, I have a good friend who is a broker, I can give you his info if you'd like. He is independant and tried to get me the best deal he could.

Drew

Thanks Drew, that would be great.

When you said tried, did he? I mean did you go with his deal?

treerootCO

01-18-2008, 06:24 PM

I have been with GMAC on two different loans the last 10 years and haven't had an issue. The same loan from them would have been $3300 more in closing costs.

Ok so GMAC is the least of the three. I'll give you that. I am upset that they said zero due at closing and then took out another loan in my name to pay themselves. That would be fine if they disclosed it, instead they said they would resolve the issue and borrowed money from me to pay themselves.

Cheeseman

01-18-2008, 07:11 PM

Are there points involved? I assume your credit score is in the 700's plus. That is a big difference. Sometimes this stuff is negotiable. Points are just a way of saying pay me now or pay me later. Just do the math. Many times points are just covered up in the closing costs for a lower interest rate.
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Cheeseman

01-18-2008, 07:12 PM

Years ago I was a mortgage broker for about 2 years. I'm sure some of the rules have changed but the principles are the same.
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ScaldedDog

01-18-2008, 07:34 PM

I'm working with a guy now - Tim Hickey at Affiliated Financial Group - who's locked us at 5.0% with no points. That's for a new 15y loan, though, and that may make some difference. Great guy to work with, though.

BTW, have you (or have any of you) done business with Linux (sic?) Financial or any of the "no closing costs" guys that advertise on KOA all the time?

Mark

Romer

01-18-2008, 07:45 PM

Thanks Mark,

Sent him an e-mail with what I am looking for, the above qoute and said you sent me.

Ken

ScaldedDog

01-18-2008, 08:27 PM

Great! Let me know how it works out.

Mark

Rezarf

01-18-2008, 08:37 PM

Thanks Drew, that would be great.

When you said tried, did he? I mean did you go with his deal?

Yup, he got my business, and i got a terrific loan. I'll PM you his info.

Nay

01-20-2008, 04:26 PM

I'm working with a guy now - Tim Hickey at Affiliated Financial Group - who's locked us at 5.0% with no points. That's for a new 15y loan, though, and that may make some difference. Great guy to work with, though.

BTW, have you (or have any of you) done business with Linux (sic?) Financial or any of the "no closing costs" guys that advertise on KOA all the time?

Mark

"No closing costs" means that the mortgage broker or loan officer is making more money in compensation from the bank by offering you a higher interest rate, which you are effectively refunded against closing costs.

The way to look at closing costs is you don't want to pay them (take the higher interest rate) if you will be in the loan for a short period of time, because it takes time to breakeven on your spend via monthly savings. For example, if you save $300 a month and spend $7,200 is closing costs and points, it is a two years before you get your money back, and that doesn't factor time value of money.

If you will be in the loan for a long time, pay your fees up front.

We probably still have a ways to go in terms of the mess the Fed created in the housing market, and there will be enormous political pressure to keep lowering rates. While the Fed action doesn't directly relate to 30 year fixed loans (these are tied more to 10 year bonds), we may get lower.

Those are good rates with reasonable closing costs. Anybody who is going to beat them will be doing so by reducing their own compensation, which may well happen given how bad the markets are right now.